Credit cards can be a precious tool in your financial life. It helps you build up a credit history, which can help lift your credit score. Plus, you can often get rewards like cash back and travel points when purchasing. On the other side, if you’re not careful with your credit card usage, it can be too easy to rack up a balance you cannot pay off at the end of the month. Luckily, we have tips that can help you use your cards responsibly. Here are some good credit card habits to start building now!

1. Look at your spending
   If your credit card spending starts feeling out of control, step back and ask why.  If you overspent due to a one-time unexpected expense like buying a new car battery, this could be an excellent time to start your emergency fund so you don’t have to rely on a credit card all the time. Or, if you’ve created a high balance due to more frequent spending, it’s time to make a monthly budget to ensure you know how much you can comfortably spend without going into debt. If you’re carrying a balance, set up a plan to pay down your debt. Start by listing the interest rate of each of your cards and contacting your financial institution to see if they will lower the rate. If not, consider switching your balance to a low interest credit card. From there, you can start prioritizing on paying down the loan with the highest interest rate first while still paying the minimums on your other loans.
2. Use only one card
   When you use multiple credit cards to buy thing, keeping track of where your money goes can be hard. If you need to streamline your spending, consider sticking with just one card and choosing one that offers the great rewards that matter most to you, whether that’s cash back or with flexible rewards that can be redeemed for travel, gift cards, etc.. That said, be sure to keep your other accounts open. The length of your credit history is a factor in determining your credit score — so the longer your account history, the better. Another factor that affects your score is your credit utilization or the percentage of your total available credit you’re using. The smaller your utilization, the better. So even if you’re only using one card, having your other cards open means credit bureaus can still see the total amount of credit available to you that you’re not dipping into.
3. Read the fine print
   Your goal should be to avoid carrying a balance on your credit card from month to month. But if you do, it’s essential to know your annual percentage rate, whether that’s set to change, and whether you’ll be penalized for missed payments (in addition to late fees). You can find these details in your credit card agreement. While at it, see if your card offers any benefits you may not have known. For instance, it may provide car damage for rental cars or price protection for your purchases.
4. Make on-time (or early) payments
   Did you know that 35% of your credit score is determined by your payment history, such as whether you pay your bills on time? If you’re having difficulty remembering your statement due date, set a calendar reminder for yourself. Or consider setting up automatic payments so you never miss a payment. Another option is to pay down your credit card every time you get a paycheck. More frequent payments mean fewer charges to watch out for, and if your spending does get off track, it will be easier to correct the following week.

Reference
https://www.northwesternmutual.com/life-and-money/good-credit-card-habits-to-start-building-now/.